First decide trend: CHECK:
H4, H1 & M15 CHARTS
H4 = Decide trend + Major
Support & Resistance levels
H1 = Decide trend + Range of
a trade
M15 = Buy @ Supports in up
trend, Sell @ resistance in downtrend
LOT SIZE TO USE: As per your account size: For example, you cannot
select a lot size of 2, if your account size is 300 or 500 dollars. It will
wipe out your account on one single bad trade. So select Lot sizes wisely. For
account size of 500 dollars or less, do not go above 0.20, max 0.50 if you are
comfortable.
Calculate Range: Potential PIP gains
Before taking a position,
decide a possible range & PIP potential
Stop loss: Keep at least around 100
dollars to avoid getting thrown out
Do not put in terminal
Trailing Stop: Put a limit after gains are registered: Use
incremental Trailing stop option
Technical Check
Divergences______Candle
Pattern________Chart Pattern_______PPO Position________
Resistance________Support_______Currency
Range: Near: Centre___Top___Bottom___
Fundamental Check
Forex Factory_______Bloomberg________
Currency Range:
EURO/USD:
1.20, 1.35, 1.5, GBP/USD: 1.48, 1.58, 1.67
DAILY ACTIONS TO TAKE
- Set high Impact alerts on google calendar and reminder in computer.
- Keep vigilant watch on forex factory & Bloomberg.
- Make advance trades in direction of established trend, before actual news get released.
- Read info that can help to stay longer into a position.
- Remember: Trailing stops in MT4 works only if the terminal is on. If you put trailing stop in terminal and close the terminal, it will automatically get removed. It works at client level, not server level like Take profit & stop loss limits.
COMMANDMENTS
- Trend is my friend
- Avoid consolidations
- If missed a sharp move, stay away. DO NOT RUN AFTER IT
- Wait for confirmation when: Price breaking out or down of Major Moving Average
- STOP LOSS if not put in system, when hit, exit at market price: DO NOT PUT LIMIT
- Put a TRAILING STOP limit in a position after it has advanced well.
- Use INCREMENTAL TRAILING STOP option in software and check its efficiency: If you are stopped out early, do not use it
- ASSUMPTION IS YOUR ENEMY: CONFIRMATION IS KEY TO SUCCESS
- When IMPORTANT NEWS are due: TAKE POSITION IN DIRECTION OF ESTABLISHED TREND
- NOTE: Sometimes advance movements around 15 minutes prior to NEWS are witnessed
- KEY NEWS EVENTS ARE HIGHLY VOLATILE: TRADE WITH CAUTION
- TRAILING STOP hits at client level, not server level: So do not close terminal otherwise Trailing stop limit will get cancelled.
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